Paris Club, India and China are not members of the Paris Club

Paris Club

• Context (TH): China will not join the official creditors’ platform negotiating a common debt treatment plan with Sri Lanka.
• In May 2023, 17 countries that have extended loans to Sri Lanka formed an official creditor committee to discuss Sri Lanka’s request for debt treatment.
• India, Japan, and France co-chaired the official creditor committee.

Paris Club

• The Paris Club is an informal group of official creditors, primarily Western nations.
• Its role is to find sustainable solutions to the payment difficulties experienced by debtor countries.
• As debtor countries undertake reforms to stabilise and restore their macroeconomic and financial situation, Paris Club creditors provide an appropriate debt treatment.
• Currently, Paris Club consists of 20 members.
• India and China are not members of the Paris Club.